The next bank crashes after just ONE DAY. after the takeover of First Republic Bank from JP Morgan. Bank dying continues!
JUST IN: PacWest Bancorp $PACW stock trading halted, citing volatility, after sinking 30% today. pic.twitter.com/awKS9nuTRD
— Watcher.Guru (@WatcherGuru) May 2, 2023
Many politicians have been caught trading around the banking crisis.
This includes U.S. Representative Daniel Goldman who sold PacWest Bancorp stock on March 6th. pic.twitter.com/zNMrKEF3Ag
— Quiver Quantitative (@QuiverQuant) May 2, 2023
US Regional Bank Stocks Today:
1. PacWest, $PACW: -30%
2. Western Alliance, $WAL: -25%
3. Metropolitan Bank, $MCB: -21%
4. HomeStreet, $HMST: -15%
5. Zions Bank, $ZION: -10%
6. KeyCorp, $KEY: -7%
7. HarborOne, $HONE: -6%
8. Citizens Financial, $CFG: -5%
The worst part?…
— The Kobeissi Letter (@KobeissiLetter) May 2, 2023
Bad day for banks. Are things accelerating?
S**t Just Hit The Fan Across Markets, Regional Banks Crashing
And despite the Biden admin claiming that FRC was just another ‘outlier’ business model, PacWest, Western Alliance, and Zions (among others) are in a freefall…
But the ‘big banks’ are also getting slammed…
“Most Shorted” stocks are getting monkeyhammered lower..
Gold has spiked back above $2000…
And Oil prices are tumbling, with WTI now back well below pre-OPEC+ levels…
www.zerohedge.com/markets/st-just-hit-fan-across-markets-regional-banks-freefall
Almost half of America’s 4,800 banks have already burned through their capital buffers and are running on negative equity. They may not have to mark all losses to market under US accounting rules but that does not make them solvent. Somebody will take those losses.
“It’s spooky. Thousands of banks are underwater,” said Professor Amit Seru, a banking expert at Stanford University. “Let’s not pretend that this is just about Silicon Valley Bank and First Republic. A lot of the US banking system is potentially insolvent.”
One of the 10 most vulnerable banks is a globally systemic entity with assets of over $1 trillion. Three others are large banks. “It is not just a problem for banks under $250bn that didn’t have to pass stress tests,” he said.
finance.yahoo.com/news/half-america-banks-already-insolvent-133000968.html
*LAWMAKERS URGE POWELL TO HALT INTEREST RATE HIKES
there we go
— zerohedge (@zerohedge) May 2, 2023
BREAKING: Bloodbath in regional banks
PacWest Bancorp -39.3%
Western Alliance -22%
Regional Bank ETF $IAT -6.5%
Every single name in the regional bank ETF is red pic.twitter.com/r297jrXUAv
— Genevieve Roch-Decter, CFA (@GRDecter) May 2, 2023
A reminder that back in the Global Financial Crisis over 150 banks went out of business.
Today, 4 failures already equate to nearly the entire amount of assets financial institutions held during the banking crisis issue of '08 and '09.
If you are asking yourself whether the Fed… pic.twitter.com/MsOUrC93jr
— Otavio (Tavi) Costa (@TaviCosta) May 2, 2023
PacWest Bancorp $PACW might be next on the chopping block for bank failures. Down big again today.
We are just waiting on Jim Cramer to tell us that it is strong bank in order to confirm the FDIC can move in. pic.twitter.com/84aiOKKPB5
— Wall Street Silver (@WallStreetSilv) May 2, 2023
Fucking Legend pic.twitter.com/KswepBcWFP
— Not Jerome Powell (@alifarhat79) May 2, 2023
Morgan Stanley is laying off 3,000 employees over the next 2 months
IPO volume is down 41% in the US this year.
Expect more cuts in investment banking. pic.twitter.com/FQpHKsssbc
— Genevieve Roch-Decter, CFA (@GRDecter) May 2, 2023
h/t jlee2027